Tea is one of the most lucrative cash crops in the world. It can be drunk any time of the day throughout the year. Any part of the world and people of all ages can enjoy tea. It is estimated that more than 3 billion cups of tea are drunk every day throughout the world. It is also served in various types and tastes. It is also a preferable beverage having almost no side effects.
Global demand for tea is also benefiting from a new clientele. Young urban consumers in large producing countries like China and India have emerged as the fastest growing segment, eager not only to pay a premium for speciality teas but also curious to know more about the product they consume – its quality, origin and contribution to sustainable development.
Young, upper-middle-class consumers are looking for fashionable products to be integrated into their lifestyles, which now also include gourmet quality tea, and consuming them in the sophisticated environments of speciality teashops and exclusive restaurants, hotels and cafés.
According to the UN Food and Agricultural Organization (FAO) World production of black tea is projected to rise annually by 2.2 per cent over the next decade to reach 4.4 million tonnes in 2027, reflecting major output increases in China, Kenya and Sri Lanka – with this China would reach the output levels of Kenya, the largest black tea exporter in the world.
Global output of green tea is foreseen to increase at an even faster rate of 7.5 per cent annually to reach 3.6 million tonnes in 2027, largely driven by China, where the production of green tea is expected to more than double from 1.5 million tonnes in 2015-2017 to 3.3 million tonnes in 2027.
Along with coffee, it is likely to grow in various parts of the country. In Ethiopia too, tea is the worst widely served beverage. Ethiopia is among the producers of tea in the world. But still has to work more on it to benefit more from it. Tea (Assam type) was introduced to Ethiopia for the first time in 1927 and is grown in the Oromia Region, Ilu Aba Bora Zone, Alle District, near Gore Town. In 1989, Wushwush and Gumero tea estates began commercial tea production in Ethiopia, and the tea industry quickly spread to other parts of the country, according to a study by Nagassa Dechassa and Misgana Merga.
For a country like Ethiopia which is primarily agrarian, it is a must to diversify its export agriculture items to support its struggling economy. So far the country is known for its export of items like coffee spices and a few types of fruits and vegetables.
For instance, coffee earned 1.4 billion USD from export last fiscal year. Though this figure is reported as the record in the country, it is still very low compared with the amount it could have earned from the crop if it fully exploited its potential.
A similar problem surrounds many of the cash crops of the country. Despite having good potential for the production tea productivity and export is still on an adventitious level. Taking into consideration the rapidly growing demand for tea globally, Ethiopia must also work towards raising its current share of the benefit from it.
The government has also prescribed tea as one of the focus areas of export items along with ongoing expansion works on wheat and rice. In Ethiopia, there are three large and well-known tea-producing areas Wushwush, Gumaro, and Chewaka. The tea plantations are located in the southwestern part of the country and are owned by private tea-growing companies that are locally registered.
Tea production in Ethiopia increased from 3,900 tonnes in 2002 to 10,489.82 tonnes in 2021 growing at an average annual rate of 5.59%, according to Knoem statistics. A report by OEC World indicates that in 2021, Ethiopia exported $2.71M in Tea, making it the 67th largest exporter of Tea in the world. In the same year, Tea was the 77th most exported product in Ethiopia. The main destination of Tea exports from Ethiopia is the United Kingdom ($1.86M), Pakistan ($483k), Switzerland ($106k), Poland ($75.6k), and Kenya ($67.1k).
At the same time, Ethiopia also imports tea from various countries. OEC indicated that in 2021, Ethiopia imported $327k in Tea, becoming the 172nd largest importer of Tea in the world. In the same year, Tea was the 719th most imported product in Ethiopia. Ethiopia imports Tea primarily from Sri Lanka ($97.4k), United Arab Emirates ($56.6k), Turkey ($43.2k), China ($37.7k), and Poland ($36.7k). The fastest-growing import markets in Tea for Ethiopia between 2020 and 2021 were Sri Lanka ($71.6k), United Arab Emirates ($45k), and Turkey ($41.4k).
Misgana’s study indicates that tea production helps to generate income and creates employment opportunities for many Ethiopians. Every year, Ethiopia produces 7,000 tons of black tea, and out of 7,000, approximately 5,000 tons are consumed in the country.
Ethiopian tea exports account for 30% of the total country with about 12 countries. Ethiopia earned $738,000 by exporting tea in 2019, making it the world’s 83rd-highest exporter of tea. Tea was Ethiopia’s 93rd most exported product in the same year. Ethiopia’s primary tea export destinations are Pakistan ($404,000), Kenya ($188,000), the United Kingdom ($61,300), Kuwait ($40,800), and the United States ($19,800).
In Southwestern Ethiopia, the tea development has provided revenue for 581 out-growers and employment possibilities for 7,139 temporary and 1,157 permanent workers. Since the cultivation of tea requires intense human labor, the availability of a large labor force in the country creates an opportunity for growers. Tea growers require a lot of labor, which is an enormous opportunity for an alarmingly expanding number of jobless workers. To realize improved performance in tea production and export the government should undertake a depth study of the current challenges in the sector and provide the necessary support.
According to a study by Nagassa Dechassa and Misgana Merga, one of the challenges the sector could face is the lack of improved technology. Despite Ethiopia’s favorable environmental conditions for producing high quality tea, production and productivity have remained stagnant. Ethiopia had the lowest tea yield of 1,300 kg per hectares whereas Sri Lanka had the highest tea output of 6,700 kg per hectare, followed by Bolivia with 2,586 kg per hectare.
The other known impact on tea production also comes from climate change. Just as it is affecting the diverse agricultural productions of the country, climate change can affect tea plantations that need wide areas and specific weather conditions suitable for them. Therefore, the government needs to interconnect the tea productivity plan with measures underway to fend off environmental degradation and climate change through ongoing programs like Green Legacy Initiative (GLI).
BY STAFF REPORTER
THE ETHIOPIAN HERALD TUESDAY 22 AUGUST 2023
